DCOM Dime Community Bancshares Inc

Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “Bank”), today reported net income available to common stockholders of $88.8 million for the year ended December 31, 2023, or $2.29 per diluted common share, compared to net income available to common stockholders of $145.3 million for the year ended December 31, 2022, or $3.73 per diluted common share.

Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Our fourth quarter results were marked by a continued stabilization in our non-interest-bearing deposit base, a continued reduction in the pace of net interest margin compression, a steady build-up in our capital ratios and stable asset quality. As we close the book on 2023, we are pleased with the initial results of a number of initiatives that we undertook during the year. Specifically, we built out our Private and Commercial Bank via the hiring of several productive groups, we added a new Healthcare lending vertical that will help diversify our asset base over time and we upgraded numerous areas of our technology and treasury management capabilities. I would like to thank all of our employees for contributing to these achievements and look forward to continuing to grow our franchise. As we look forward to 2024, we have strategically positioned our balance sheet to benefit from projected Federal Reserve rate cuts.”

For the quarter ended December 31, 2023, net income available to common stockholders was $14.5 million, or $0.37 per diluted common share, compared to $13.2 million, or $0.34 per diluted common share, for the quarter ended September 30, 2023, and $38.2 million, or $0.99 per diluted common share, for the quarter ended December 31, 2022. Fourth quarter 2023 results included $1.0 million of pre-tax expense related to the FDIC special assessment for the recovery of losses related to the closures of Silicon Valley Bank and Signature Bank. Third quarter 2023 results included $8.6 million of pre-tax severance expense. The Company had an elevated effective tax rate in the second half of 2023 of approximately 35%; the tax rate is expected to normalize in 2024 to approximately 27%.

Highlights for the Fourth Quarter of 2023 Included:

• Total deposits increased $276 million on a year-over-year basis;
• The ratio of average non-interest-bearing deposits to average total deposits for the fourth quarter was 29%;
• The pace of NIM compression continued to slow in the fourth quarter; on a linked quarter basis, the NIM declined by 5 basis points in the fourth quarter of 2023 compared to a 16 basis point decline for the third quarter of 2023 and a 24 basis point decline for the second quarter of 2023;
• Loan originations increased to $195.9 million for the fourth quarter of 2023, compared to $153.4 million in the prior quarter;
• Credit quality continues to be stable with non-performing assets and loans 90 days past due representing only 0.21% of total assets as of December 31, 2023; and
• Capital ratios continue to build, with the Company’s Tier 1 Risk Based Capital Ratio increasing to 10.94% at December 31, 2023.

Management’s Discussion of Quarterly Operating Results

Net Interest Income

Net interest income for the fourth quarter of 2023 was $74.1 million compared to $76.5 million for the third quarter of 2023 and $96.8 million for the fourth quarter of 2022.

The table below provides a reconciliation of the reported net interest margin (“NIM”) and adjusted NIM excluding the impact of purchase accounting accretion on the loan portfolio.

(Dollars in thousands)		Q4 2023				Q3 2023			Q4 2022
Net interest income		$	74,121			$	76,479		$	96,804
Purchase accounting amortization (accretion) on loans ("PAA")			(55	)			186			(390	)
Adjusted net interest income excluding PAA on loans (non-GAAP)		$	74,066			$	76,665		$	96,414
Average interest-earning assets		$	12,828,060			$	12,984,061		$	12,198,905
NIM(1)			2.29		%		2.34	%		3.15		%
Adjusted NIM excluding PAA on loans (non-GAAP)(2)			2.29		%		2.34	%		3.14		%

_______________________________ 

(1) NIM represents net interest income divided by average interest-earning assets.(2) Adjusted NIM excluding PAA on loans represents adjusted net interest income, which excludes net interest income on PAA loans divided by average interest-earning assets.

Loan Portfolio

The ending weighted average rate (“WAR”) (1) on the total loan portfolio was 5.29% at December 31, 2023, a 9 basis point increase compared to the ending WAR of 5.20% on the total loan portfolio at September 30, 2023.

Outlined below are loan balances and WARs for the period ended as indicated.

		December 31, 2023					September 30, 2023					December 31, 2022
(Dollars in thousands)		Balance			WAR		Balance			WAR		Balance			WAR
Loans held for investment balances at period end:
Business loans(2)		$	2,310,379		6.81	%	$	2,271,768		6.72	%	$	2,211,857		6.05	%
One-to-four family residential, including condominium and cooperative apartment			889,236		4.47			892,869		4.39			773,321		3.96
Multifamily residential and residential mixed-use(3)(4)			4,017,703		4.53			4,102,024		4.45			4,026,826		4.08
Non-owner-occupied commercial real estate			3,381,842		5.19			3,374,281		5.09			3,317,485		4.68
Acquisition, development, and construction			168,513		8.71			203,402		8.92			229,663		8.19
Other loans			5,755		6.75			6,267		6.28			7,679		10.22
Loans held for investment		$	10,773,428		5.29	%	$	10,850,611		5.20	%	$	10,566,831		4.76	%

_______________________________ 

(1) Weighted average rate is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.(2) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and Small Business Administration Paycheck Protection Program (“PPP”) loans. (3) Includes loans underlying multifamily cooperatives. (4) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

Outlined below are the loan originations, for the quarter ended as indicated.

(Dollars in millions)		Q4 2023			Q3 2023			Q4 2022
Loan originations		$	195.9		$	153.4		$	638.3

Deposits and Borrowed Funds

Period end total deposits (including mortgage escrow deposits) at December 31, 2023 were $10.53 billion, compared to $10.64 billion at September 30, 2023 and $10.25 billion at December 31, 2022. CEO Lubow commented, “Despite the impacts of reduced liquidity in the banking system, we were pleased to grow deposits on a year-over-year basis. Hires that we made in the second quarter of 2023 have already generated approximately $333 million of deposits, with 50% of the balances being in non-interest-bearing deposits.”

Total Federal Home Loan Bank advances were $1.31 billion at December 31, 2023 compared to $1.12 billion at September 30, 2023 and $1.13 billion at December 31, 2022.

Non-Interest Income

Non-interest income was $8.9 million during the fourth quarter of 2023, $7.9 million during the third quarter of 2023, and $9.5 million during the fourth quarter of 2022.

Non-Interest Expense

Total non-interest expense was $53.9 million during the fourth quarter of 2023, $59.5 million during the third quarter of 2023, and $50.7 million during the fourth quarter of 2022. Excluding the impact of severance expense, the FDIC special assessment, loss on extinguishment of debt, and amortization of other intangible assets, adjusted non-interest expense was $52.6 million during the fourth quarter of 2023, $50.6 million during the third quarter of 2023, and $50.3 million during the fourth quarter of 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The ratio of non-interest expense to average assets was 1.58% during the fourth quarter of 2023, compared to 1.73% during the linked quarter and 1.56% for the fourth quarter of 2022. Excluding the impact of severance expense, the FDIC special assessment, loss on extinguishment of debt, and amortization of other intangible assets, the ratio of adjusted non-interest expense to average assets was 1.54% during the fourth quarter of 2023, compared to 1.48% during the linked quarter and 1.55% for the fourth quarter of 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).

The efficiency ratio was 65.0% during the fourth quarter of 2023, compared to 70.5% during the linked quarter and 47.7% during the fourth quarter of 2022. Excluding the impact of net loss on equity securities, net loss on sale of securities and other assets, severance expense, the FDIC special assessment, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 63.6% during the fourth quarter of 2023, compared to 59.7% during the linked quarter and 47.3% during the fourth quarter of 2022 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Income Tax Expense

The reported effective tax rate for the fourth quarter of 2023 was 35.6% compared to 35.1% for the third quarter of 2023, and 27.5% for the fourth quarter of 2022. The tax rate for 2024 is expected to be approximately 27%.

Credit Quality

Non-performing loans were $29.1 million at December 31, 2023 compared to $23.3 million at September 30, 2023 and $34.2 million at December 31, 2022.

A credit loss provision of $3.7 million was recorded during the fourth quarter of 2023, compared to a credit loss provision of $1.8 million during the third quarter of 2023, and a credit loss provision of $335 thousand during the fourth quarter of 2022. The credit loss provision in the fourth quarter of 2023 was primarily associated with provisioning for individually analyzed loans.

Capital Management

The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of December 31, 2023. All of the Company’s and the Bank’s risk-based regulatory capital ratios increased in the fourth quarter of 2023.

Dividends per common share were $0.25 during the fourth and third quarters of 2023, respectively.

Book value per common share was $28.58 at December 31, 2023 compared to $28.03 at September 30, 2023.

Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $24.44 at December 31, 2023 compared to $23.87 at September 30, 2023 (see “Non-GAAP Reconciliation” tables at the end of this news release).

Earnings Call Information

The Company will conduct a conference call at 8:00 a.m. (ET) on Friday, January 26, 2024, during which CEO Lubow will discuss the Company’s fourth quarter 2023 financial performance, with a question-and-answer session to follow.

Participants may access the conference call via webcast using this link: Webcast Link Here. To participate via telephone, please register in advance using this Registration Link. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time.

A replay of the conference call and webcast will be available on-demand for 12 months.

ABOUT DIME COMMUNITY BANCSHARES, INC.Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $13.6 billion in assets and the number one deposit market share among community banks on Greater Long Island(1).

(1) Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks less than $20 billion in assets.

This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as “annualized," “anticipate," "believe," “continue,” "could," "estimate," "expect," "intend," “likely,” "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.

Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may affect demand for our products and reduce interest margins and the value of our investments; changes in deposit flows, the cost of funds, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company’s loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general socio-economic conditions, public health emergencies, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and updates set forth in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Contact: Avinash ReddySenior Executive Vice President – Chief Financial Officer718-782-6200 extension 5909

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(In thousands)
		December 31,				September 30,				December 31,
		2023				2023				2022
Assets:
Cash and due from banks		$	457,547			$	358,824			$	169,297
Securities available-for-sale, at fair value			886,240				869,879				950,587
Securities held-to-maturity			594,639				600,291				585,798
Loans held for sale			10,159				3,924				—
Loans held for investment, net:
Business loans(1)			2,310,379				2,271,768				2,211,857
One-to-four family and cooperative/condominium apartment			889,236				892,869				773,321
Multifamily residential and residential mixed-use(2)(3)			4,017,703				4,102,024				4,026,826
Non-owner-occupied commercial real estate			3,381,842				3,374,281				3,317,485
Acquisition, development and construction			168,513				203,402				229,663
Other loans			5,755				6,267				7,679
Allowance for credit losses			(71,743	)			(72,563	)			(83,507	)
Total loans held for investment, net			10,701,685				10,778,048				10,483,324
Premises and fixed assets, net			44,868				45,064				46,749
Premises held for sale			905				905				—
Restricted stock			98,750				90,085				88,745
Bank Owned Life Insurance ("BOLI")			349,816				347,400				333,292
Goodwill			155,797				155,797				155,797
Other intangible assets			5,059				5,409				6,484
Operating lease assets			52,729				55,600				57,857
Derivative assets			122,132				177,369				154,485
Accrued interest receivable			55,666				53,608				48,561
Other assets			100,013				109,202				108,945
Total assets		$	13,636,005			$	13,651,405			$	13,189,921
Liabilities:
Non-interest-bearing checking (excluding mortgage escrow deposits)		$	2,884,378			$	2,935,156			$	3,449,763
Interest-bearing checking			515,987				630,686				827,454
Savings (excluding mortgage escrow deposits)			2,335,354				2,309,440				2,259,909
Money market			3,125,996				3,211,197				2,532,270
Certificates of deposit			1,607,683				1,442,299				1,115,364
Deposits (excluding mortgage escrow deposits)			10,469,398				10,528,778				10,184,760
Non-interest-bearing mortgage escrow deposits			61,121				107,545				69,455
Interest-bearing mortgage escrow deposits			136				223				192
Total mortgage escrow deposits			61,257				107,768				69,647
FHLBNY advances			1,313,000				1,123,000				1,131,000
Other short-term borrowings			—				—				1,360
Subordinated debt, net			200,196				200,218				200,283
Derivative cash collateral			108,100				185,620				153,040
Operating lease liabilities			55,454				58,281				60,340
Derivative liabilities			121,265				160,712				137,335
Other liabilities			81,110				82,684				82,573
Total liabilities			12,409,780				12,447,061				12,020,338
Stockholders' equity:
Preferred stock, Series A			116,569				116,569				116,569
Common stock			416				416				416
Additional paid-in capital			494,454				494,470				495,410
Retained earnings			813,007				808,235				762,762
Accumulated other comprehensive loss ("AOCI"), net of deferred taxes			(91,579	)			(106,913	)			(94,379	)
Unearned equity awards			(8,622	)			(10,170	)			(8,078	)
Treasury stock, at cost			(98,020	)			(98,263	)			(103,117	)
Total stockholders' equity			1,226,225				1,204,344				1,169,583
Total liabilities and stockholders' equity		$	13,636,005			$	13,651,405			$	13,189,921

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(1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.(2) Includes loans underlying multifamily cooperatives.(3) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS(Dollars in thousands except share and per share amounts)
		Three Months Ended										Year Ended
		December 31,			September 30,				December 31,			December 31,				December 31,
		2023			2023				2022			2023				2022
Interest income:
Loans		$	144,744		$	142,995			$	120,773		$	554,488			$	406,601
Securities			7,918			7,916				7,652			32,179				29,224
Other short-term investments			6,094			6,930				1,444			22,693				3,400
Total interest income			158,756			157,841				129,869			609,360				439,225
Interest expense:
Deposits and escrow			66,650			62,507				22,017			219,045				38,433
Borrowed funds			15,617			16,925				9,783			66,472				19,117
Derivative cash collateral			2,368			1,930				1,265			7,272				1,812
Total interest expense			84,635			81,362				33,065			292,789				59,362
Net interest income			74,121			76,479				96,804			316,571				379,863
Provision for credit losses			3,720			1,806				335			2,770				5,374
Net interest income after provision			70,401			74,673				96,469			313,801				374,489
Non-interest income:
Service charges and other fees			3,804			3,963				3,945			16,437				16,206
Title fees			466			291				453			1,295				2,031
Loan level derivative income			728			783				1,397			7,081				3,637
BOLI income			2,416			2,317				2,187			9,748				10,346
Gain on sale of SBA loans			531			335				621			1,592				1,797
Gain on sale of residential loans			12			21				55			115				448
Net gain (loss) on equity securities			321			(299	)			—			(758	)			—
Net (loss) gain on sale of securities and other assets			—			(22	)			—			(1,469	)			1,397
Other			594			539				809			2,165				2,294
Total non-interest income			8,872			7,928				9,467			36,206				38,156
Non-interest expense:
Salaries and employee benefits			30,383			30,520				31,632			117,437				120,108
Severance			25			8,562				5			9,093				2,198
Occupancy and equipment			7,261			7,277				7,356			29,055				30,220
Data processing costs			3,730			4,309				4,023			16,474				15,175
Marketing			1,765			2,079				1,559			6,781				5,900
Professional services			1,279			1,277				1,831			6,155				8,069
Federal deposit insurance premiums(1)			3,240			1,866				800			8,853				3,900
Loss on extinguishment of debt			—			—				—			—				740
Amortization of other intangible assets			350			349				431			1,425				1,878
Other			5,911			3,284				3,065			17,855				12,542
Total non-interest expense			53,944			59,523				50,702			213,128				200,730
Income before taxes			25,329			23,078				55,234			136,879				211,915
Income tax expense			9,021			8,093				15,175			40,785				59,359
Net income			16,308			14,985				40,059			96,094				152,556
Preferred stock dividends			1,821			1,822				1,821			7,286				7,286
Net income available to common stockholders		$	14,487		$	13,163			$	38,238		$	88,808			$	145,270
Earnings per common share ("EPS"):
Basic		$	0.37		$	0.34			$	0.99		$	2.29			$	3.73
Diluted		$	0.37		$	0.34			$	0.99		$	2.29			$	3.73
Average common shares outstanding for diluted EPS			38,216,476			38,203,961				38,123,221			38,187,477				38,538,834

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(1) Fourth quarter of 2023 included $1.0 million of pre-tax expense related to the FDIC special assessment for the recovery of losses related to the closures of Silicon Valley Bank and Signature Bank.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED SELECTED FINANCIAL HIGHLIGHTS(Dollars in thousands except per share amounts)
		At or For the Three Months Ended									At or For the Year Ended
		December 31,			September 30,			December 31,			December 31,			December 31,
		2023			2023			2022			2023			2022
Per Share Data:
Reported EPS (Diluted)		$	0.37		$	0.34		$	0.99		$	2.29		$	3.73
Cash dividends paid per common share			0.25			0.25			0.24			0.99			0.96
Book value per common share			28.58			28.03			27.30			28.58			27.30
Tangible common book value per share (1)			24.44			23.87			23.09			24.44			23.09
Common shares outstanding			38,823			38,811			38,573			38,823			38,573
Dividend payout ratio			67.57	%		73.53	%		24.24	%		43.23	%		25.74	%
Performance Ratios (Based upon Reported Net Income):
Return on average assets			0.48	%		0.44	%		1.23	%		0.71	%		1.22	%
Return on average equity			5.32			4.91			13.72			7.91			13.05
Return on average tangible common equity (1)			6.20			5.69			17.34			9.59			16.49
Net interest margin			2.29			2.34			3.15			2.46			3.25
Non-interest expense to average assets			1.58			1.73			1.56			1.56			1.61
Efficiency ratio			65.0			70.5			47.7			60.4			48.0
Effective tax rate			35.62			35.07			27.47			29.80			28.01
Balance Sheet Data:
Average assets		$	13,630,096		$	13,759,493		$	12,985,203		$	13,625,215		$	12,466,762
Average interest-earning assets			12,828,060			12,984,061			12,198,905			12,847,238			11,684,501
Average tangible common equity (1)			948,024			943,805			888,973			936,840			889,026
Loan-to-deposit ratio at end of period (2)			102.3			102.0			103.0			102.3			103.0
Capital Ratios and Reserves - Consolidated: (3)
Tangible common equity to tangible assets (1)			7.04	%		6.87	%		6.84	%
Tangible equity to tangible assets (1)			7.91			7.73			7.73
Tier 1 common equity ratio			9.84			9.67			9.15
Tier 1 risk-based capital ratio			10.94			10.76			10.23
Total risk-based capital ratio			13.54			13.33			12.89
Tier 1 leverage ratio			8.51			8.38			8.53
Consolidated CRE concentration ratio (4)			538			547			554
Allowance for credit losses/ Total loans			0.67			0.67			0.79
Allowance for credit losses/ Non-performing loans			246.55			311.16			243.91

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(1) See "Non-GAAP Reconciliation" tables for reconciliation of tangible equity, tangible common equity, and tangible assets. (2) Total deposits include mortgage escrow deposits, which fluctuate seasonally.(3) December 31, 2023 ratios are preliminary pending completion and filing of the Company’s regulatory reports.(4) The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. December 31, 2023 is preliminary pending completion and filing of the Company’s regulatory reports.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME(Dollars in thousands)
		Three Months Ended
		December 31, 2023								September 30, 2023								December 31, 2022
								Average								Average								Average
		Average						Yield/		Average						Yield/		Average						Yield/
		Balance			Interest			Cost		Balance			Interest			Cost		Balance			Interest			Cost
Assets:
Interest-earning assets:
Business loans(1)		$	2,264,401		$	38,740		6.79	%	$	2,260,203		$	38,384		6.74	%	$	2,070,440		$	30,387		5.82	%
One-to-four family residential, including condo and coop			893,008			9,706		4.31			879,688			9,165		4.13			750,849			6,892		3.64
Multifamily residential and residential mixed-use			4,070,327			46,715		4.55			4,114,476			46,099		4.45			3,998,478			40,658		4.03
Non-owner-occupied commercial real estate			3,376,581			45,037		5.29			3,382,927			44,184		5.18			3,263,917			37,769		4.59
Acquisition, development, and construction			188,022			4,459		9.41			222,039			5,075		9.07			243,512			4,942		8.05
Other loans			5,837			87		5.91			6,156			88		5.67			8,269			125		6.00
Securities			1,599,724			7,918		1.96			1,619,960			7,916		1.94			1,663,969			7,652		1.82
Other short-term investments			430,160			6,094		5.62			498,612			6,930		5.51			199,471			1,444		2.87
Total interest-earning assets			12,828,060			158,756		4.91	%		12,984,061			157,841		4.82	%		12,198,905			129,869		4.22	%
Non-interest-earning assets			802,036								775,432								786,298
Total assets		$	13,630,096							$	13,759,493							$	12,985,203
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking(2)		$	524,573		$	1,063		0.80	%	$	786,892		$	2,896		1.46	%	$	845,530		$	1,174		0.55	%
Money market			3,136,891			27,541		3.48			2,975,267			24,275		3.24			2,469,177			6,620		1.06
Savings(2)			2,295,882			20,979		3.63			2,342,424			20,316		3.44			2,234,968			9,889		1.76
Certificates of deposit			1,564,817			17,067		4.33			1,494,491			15,020		3.99			1,063,053			4,334		1.62
Total interest-bearing deposits			7,522,163			66,650		3.52			7,599,074			62,507		3.26			6,612,728			22,017		1.32
FHLBNY advances			1,174,848			13,064		4.41			1,250,717			14,370		4.56			724,902			6,383		3.49
Subordinated debt, net			200,210			2,553		5.06			200,232			2,553		5.06			200,298			2,553		5.06
Other short-term borrowings			—			—		—			120			2		6.61			90,275			847		3.72
Total borrowings			1,375,058			15,617		4.51			1,451,069			16,925		4.63			1,015,475			9,783		3.82
Derivative cash collateral			161,535			2,368		5.82			156,795			1,930		4.88			157,898			1,265		3.18
Total interest-bearing liabilities			9,058,756			84,635		3.71	%		9,206,938			81,362		3.51	%		7,786,101			33,065		1.68	%
Non-interest-bearing checking(2)			3,059,289								3,065,186								3,755,395
Other non-interest-bearing liabilities			286,373								265,559								275,636
Total liabilities			12,404,418								12,537,683								11,817,132
Stockholders' equity			1,225,678								1,221,810								1,168,071
Total liabilities and stockholders' equity		$	13,630,096							$	13,759,493							$	12,985,203
Net interest income					$	74,121							$	76,479							$	96,804
Net interest rate spread								1.20	%							1.31	%							2.54	%
Net interest margin								2.29	%							2.34	%							3.15	%
Deposits (including non-interest-bearing checking accounts)(2)		$	10,581,452		$	66,650		2.50	%	$	10,664,260		$	62,507		2.33	%	$	10,368,123		$	22,017		0.84	%

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(1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.(2) Includes mortgage escrow deposits.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESUNAUDITED SCHEDULE OF NON-PERFORMING ASSETS(Dollars in thousands)
		At or For the Three Months Ended
		December 31,				September 30,				December 31,
Asset Quality Detail		2023				2023				2022
Non-performing loans ("NPLs")
Business loans (1)		$	18,574			$	19,555			$	27,787
One-to-four family residential, including condominium and cooperative apartment			3,248				2,874				3,203
Multifamily residential and residential mixed-use			—				—				—
Non-owner-occupied commercial real estate			6,620				15				2,491
Acquisition, development, and construction			657				657				657
Other loans			—				219				99
Total Non-accrual loans		$	29,099			$	23,320			$	34,237
Total Non-performing assets ("NPAs")		$	29,099			$	23,320			$	34,237
Loans 90 days delinquent and accruing ("90+ Delinquent")
Business loans		$	—			$	—			$	—
One-to-four family residential, including condominium and cooperative apartment			—				—				—
Multifamily residential and residential mixed-use			—				—				—
Non-owner-occupied commercial real estate			—				—				—
Acquisition, development, and construction			—				—				—
Other loans			—				—				—
90+ Delinquent		$	—			$	—			$	—
NPAs and 90+ Delinquent		$	29,099			$	23,320			$	34,237
NPAs and 90+ Delinquent / Total assets			0.21	%			0.17	%			0.26	%
Net charge-offs ("NCOs")		$	4,555			$	4,864			$	185
NCOs / Average loans (2)			0.17	%			0.18	%			0.01	%

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(1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.(2) Calculated based on annualized NCOs to average loans, excluding loans held for sale.

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIESNON-GAAP RECONCILIATION(Dollars in thousands except per share amounts)

The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles ("GAAP") (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provides investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.

The following non-GAAP financial measures exclude pre-tax income and expenses associated with net loss on equity securities, net loss on sale of securities and other assets, severance, the FDIC special assessment and loss on extinguishment of debt:  

		Three Months Ended											Year Ended
		December 31,				September 30,				December 31,			December 31,				December 31,
		2023				2023				2022			2023				2022
Reconciliation of Reported and Adjusted (non-GAAP) Net Income Available to Common Stockholders
Reported net income available to common stockholders		$	14,487			$	13,163			$	38,238		$	88,808			$	145,270
Adjustments to net income(1):
Net (gain) loss on equity securities			(321	)			299				—			758				—
Net loss (gain) on sale of securities and other assets			—				22				—			1,469				(1,397	)
Severance			25				8,562				5			9,093				2,198
FDIC special assessment			999				—				—			999				—
Loss on extinguishment of debt			—				—				—			—				740
Income tax effect of adjustments			(208	)			(176	)			—			(1,193	)			145
Adjusted net income available to common stockholders (non-GAAP)		$	14,982			$	21,870			$	38,243		$	99,934			$	146,956
Adjusted Ratios (Based upon Adjusted (non-GAAP) Net Income as calculated above)
Adjusted EPS (Diluted)		$	0.39			$	0.56			$	0.99		$	2.58			$	3.77
Adjusted return on average assets			0.49		%		0.69		%		1.23	%		0.79		%		1.24		%
Adjusted return on average equity			5.48				7.76				13.72			8.82				13.20
Adjusted return on average tangible common equity			6.41				9.38				17.34			10.77				16.67
Adjusted non-interest expense to average assets			1.54				1.48				1.55			1.48				1.57
Adjusted efficiency ratio			63.6				59.7				47.3			56.8				47.0

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(1) Adjustments to net income are taxed at the Company's statutory tax rate of approximately 30% unless otherwise noted.

The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):

			Three Months Ended												Year Ended
			December 31,				September 30,				December 31,				December 31,				December 31,
			2023				2023				2022				2023				2022
Operating expense as a % of average assets - as reported			1.58		%		1.73		%		1.56		%		1.56		%		1.61		%
Loss on extinguishment of debt			—				—				—				—				(0.01	)
Severance			—				(0.25	)			—				(0.06	)			(0.02	)
FDIC special assessment			(0.03	)			—				—				(0.01	)			—
Amortization of other intangible assets			(0.01	)			—				(0.01	)			(0.01	)			(0.01	)
Adjusted operating expense as a % of average assets (non-GAAP)			1.54		%		1.48		%		1.55		%		1.48		%		1.57		%

The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):

		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2023				2023				2022				2023				2022
Efficiency ratio - as reported (non-GAAP)(1)			65.0		%		70.5		%		47.7		%		60.4		%		48.0		%
Non-interest expense - as reported		$	53,944			$	59,523			$	50,702			$	213,128			$	200,730
Severance			(25	)			(8,562	)			(5	)			(9,093	)			(2,198	)
FDIC special assessment			(999	)			—				—				(999	)			—
Loss on extinguishment of debt			—				—				—				—				(740	)
Amortization of other intangible assets			(350	)			(349	)			(431	)			(1,425	)			(1,878	)
Adjusted non-interest expense (non-GAAP)		$	52,570			$	50,612			$	50,266			$	201,611			$	195,914
Net interest income - as reported		$	74,121			$	76,479			$	96,804			$	316,571			$	379,863
Non-interest income - as reported		$	8,872			$	7,928			$	9,467			$	36,206			$	38,156
Net (gain) loss on equity securities			(321	)			299				—				758				—
Net loss (gain) on sale of securities and other assets			—				22				—				1,469				(1,397	)
Adjusted non-interest income (non-GAAP)		$	8,551			$	8,249			$	9,467			$	38,433			$	36,759
Adjusted total revenues for adjusted efficiency ratio (non-GAAP)		$	82,672			$	84,728			$	106,271			$	355,004			$	416,622
Adjusted efficiency ratio (non-GAAP)(2)			63.6		%		59.7		%		47.3		%		56.8		%		47.0		%

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(1) The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest income.(2) The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of GAAP net interest income and adjusted non-interest income.

The following table presents the tangible common equity to tangible assets, tangible equity to tangible assets, and tangible common book value per share calculations (non-GAAP):

		December 31,				September 30,				December 31,
		2023				2023				2022
Reconciliation of Tangible Assets:
Total assets		$	13,636,005			$	13,651,405			$	13,189,921
Goodwill			(155,797	)			(155,797	)			(155,797	)
Other intangible assets			(5,059	)			(5,409	)			(6,484	)
Tangible assets (non-GAAP)		$	13,475,149			$	13,490,199			$	13,027,640
Reconciliation of Tangible Common Equity - Consolidated:
Total stockholders' equity		$	1,226,225			$	1,204,344			$	1,169,583
Goodwill			(155,797	)			(155,797	)			(155,797	)
Other intangible assets			(5,059	)			(5,409	)			(6,484	)
Tangible equity (non-GAAP)			1,065,369				1,043,138				1,007,302
Preferred stock, net			(116,569	)			(116,569	)			(116,569	)
Tangible common equity (non-GAAP)		$	948,800			$	926,569			$	890,733
Common shares outstanding			38,823				38,811				38,573
Tangible common equity to tangible assets (non-GAAP)			7.04		%		6.87		%		6.84		%
Tangible equity to tangible assets (non-GAAP)			7.91				7.73				7.73
Book value per common share		$	28.58			$	28.03			$	27.30
Tangible common book value per share (non-GAAP)			24.44				23.87				23.09